# In the matter of Pratibha Industries Limited

> NCLT judgment dated 2024-04-08. Citation: TCN-2024-NCLT-01792. This case involves a Miscellaneous Application (IA 1662/2022) filed by Mr. Anil Mehta, the…

- **Court:** NCLT
- **Order date:** 8 Apr 2024
- **Citation:** TCN-2024-NCLT-01792
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/pratibha-industries-limited-0781c650

## Summary

### Background

This case involves a Miscellaneous Application (IA 1662/2022) filed by Mr. Anil Mehta, the Resolution Professional (RP) of Pratibha Industries Limited (Corporate Debtor), under Section 60(5) of the Insolvency and Bankruptcy Code, 2016. The RP sought directions against the Respondents to reverse the sale transactions of properties located in Defence Colony, New Delhi. The Adjudicating Authority had previously appointed Mr. Sunil Kumar Choudhary as the Interim Resolution Professional (IRP) and imposed a moratorium under Section 14 of the Code. The IRP was later replaced by Mr. Anil Mehta. The Corporate Debtor had availed credit facilities from Yes Bank Limited, secured by a mortgage on the properties in question. Yes Bank initiated recovery proceedings under the SARFAESI

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## Facts

Pratibha Industries Limited (Corporate Debtor) availed credit facilities from Yes Bank Limited (Respondent No. 1), amounting to INR 500,000,000. To secure these facilities, the Corporate Debtor created a mortgage in favor of Yes Bank on properties located at B-85 and E-10 Defence Colony, New Delhi. On 10 May 2018, Yes Bank issued a notice under Section 13(2) of the SARFAESI Act for recovery of INR 87,53,58,171. Yes Bank took physical possession of the properties on 21 September 2018 and published a notice of possession on 27 September 2018. Yes Bank issued a sale notice for e-auction on 30 November 2018, but the auction on 03 January 2019 was unsuccessful. A second sale notice was issued on 11 January 2019. On 28 January 2019, an e-auction was conducted for the E-10

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## Issues and analysis

### Issue 1: Whether the sale of property bearing No. E-10 by Respondent No. 1 was valid, considering the …

**Ratio:** The confirmation of sale by the Bank creates a vested right in favor of the purchaser,

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**Reasoning:** The court reasoned that the confirmation of the sale letter was issued on 28.01.2019, and

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**Interpretation:** The interpretation hinges on the point at which a sale is considered complete.

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**Application:** In this case, the confirmation of sale for property E-10 was issued on

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## Parties

- **Judges:** Prabhat…; V.G. B…
- **Appellants:** Anil M…
- **Respondents:** Pratibha Industrie…; Yes Bank L…
- **Advocates:** Shyam Ka…; Dhrupad V…; +5 more

## Timeline

- **2018-05-10 — SARFAESI Notic…**: Yes Bank issued a notice to the Corporate Debtor under Section 13(2) of the SARFAESI Act…
- **2018-09-21 — Physical Possession…**: Yes Bank took physical…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 60(5) — Adjudicating Authority for corporate persons](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-60)

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